IVA and house sale

[jojomumof3]

hi.

Does anybody have any experience of this. I'm 18 months in. If you sell your home do they take all you owe. I was thinking of moving in withr my partner but not sure how I would stand financially. Am I better holding onto it for a couple of years when I've cleared my IVA

Hope this makes sense. Just not completely sure how it all works.

thanks.

Assuming that you actually want to move in with your partner rather than stay independent, why would you keep hold of a valuable asset when you've got debts problematic enough to require an IVA?

Yes I do. it's a joint name with my ex husband. I'm just not sure of all the complications.

we always managed our debt fine but xh lost his job 6 times in 18 months at the height of the recession. we were covered for first two job losses but only so much you can prepare. so everything had to go on credit card for a short while which we were struggling to pay back. seen many advisors and IVA seemed our best option.

Not sure if there's enough equity in the house to clear the debt.

Just wondering what people's experience s were

Hi Jojomumof3

When you are in an IVA it is not quite as simple as just selling, you will have a restriction registered against your property which your IVA company will need to agree to lift in order for you to sell and you will have to get the consent of your ex husband in order for the sale to go ahead.

You could work out how much equity after costs of sale and see if the IVA company will accept this equity as final settlement of the IVA. Thus giving you a fresh start with your partner.

How much debt went into your IVA and how much were you paying each month?

myself and ex pay half each. £248 each a month. I do find it a struggle but I find it each month.

Me and xh still got on he will pretty much agree with what I decide. Means he doesn't have to make any decisions.

I didn't realise you could make them an offer to clear the debt.
I know it's on your file for 6years and take responsibility for it.

some forums I read say you're better off still paying it monthly until the end of the term. seems to be people saying different things from all sides.

sorry I was playing around with my name and couldn't change it back for this. it's still jojomumof3

I suggest you speak to the IVA company and tell them you are struggling due to the change in your circumstances and ask them if you can offer the equity in final settlement.

It sounds like you are in an interlocking IVA so your ex husband will need to agree for his share the equity to go towards clearing the debts.

Your IVA company will need to call a variation meeting with creditors for them to accept the equity in final settlement and the IVA to conclude.

Both you and ex husband will have a fresh start - how much equity do you think there is ?

thank you. I'll feel more prepared when I ring them.

I think we have enough equity to be debt free. Scary thought starting afresh but with no stability.

I'll get onto them

Good luck hun and remember that it is your IVA and your right to propose to creditors whatever you want to.

Don't take any flannel and tell them you want a variation based on the sale of the property